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Atricle Dump - A Simple Plan For Community Development vs. Unintended Consequences
What’s the difference you ask? Well, plenty!Your basic pyramid scheme ( which Charles Ponzi perfected in 1920’s Boston) is just that…a scheme—one to get your money out of your pocket and into someone else’s. An elaborate swindle, and sadly one that is still alive and well today.One unfortunate casualty of this type of “crookery” is the legitimate business that markets its products using Multi-Level Marketing. Other names are “network marketing” or just “networking.” Because they look similar to pyramid / Ponzi schemes, they are often dismissed as such out of hand. So, how can you tell the difference? Here are the clues:1. Legit MLM’s sell real products or services that generate a profit that is shared among the participants. Ponzi’s offer fantastic promises of huge profits with NO WORK! (Where have you heard that before?)2. With real MLM’s, everyone pays the same modest “starter fee” which is often refun
Here is an example of unintended consequences. Before a private or hard money loan is granted, due diligence is conducted. A part of the due diligence is a credit report on the borrower and an appraisal on the property. Our properties have a maximum Loan To Value ratio of 70% of the
There are many business areas that are seasonal in nature in the brick and mortar world. The same is true for the web, which can make optimizing the site a bit tricky.Certain businesses are inherently seasonal in nature. The classic example would be a ski resort such as Steamboat Springs in Colorado. Obviously, the resort does big business during the winter months when you, me and everyone is recklessly throwing ourselves down the mountains. In the summer, however, business slacks off although the resort tries to come up with other ways to lure people such as mountain biking. Obviously, the summer business is a small fraction of that done in winter.Sites on the web can also be seasonal in nature. If you have a site offering ski products or services, you are going to have the same problem as the ski resorts. Early fall through early spring are going to be busy times. Late spring through the summer? Picture the proverbia
Over the years we have witnessed the dismal results of most major cities and their inner city development challenges. The inability to change the “urban blight” that is so pervasive in our cities to “urban renewal” is no accident. I can’t be sure this is the result of some insidious plan, bad luck, poor planning, or the effects of the “law of unintended consequences. Regardless of which, it is no accident.
In my role as a private lender, many of my borrowers have spent the major part of this year listening to many variations of the same story from conventional lenders. The basic story is the conventional mortgage lenders have become victims of their own marketing and exuberance. The easily attainable low-down payment and nothing down mortgages in conjunction with the lowest mortgage rates in many years has finally reached its tipping point.
Let’s also include the negative impact of mortgage fraud. Inflated appraisals, straw buyers, and unscrupulous real estate professionals collaborated in fraudulent transactions that cost lenders all over America millions of dollars in loan losses.
Unfortunately the customary response by the banking and mortgage lending industry to the needed market correction is an “over-correction”. The term “over-correction” is appropriate because it causes what I am sure are unintended consequences.
Here is an example of unintended consequences. Before a private or hard money loan is granted, due diligence is conducted. A part of the due diligence is a credit report on the borrower and an appraisal on the property. Our properties have a maximum Loan To Value ratio of 70% of the
When asked what the secret to the success of her business was, Lucy Garrighan, president of Business Alternatives Inc., replied:"I guess it is always remaining positive about what you are doing and working hard. If you believe you cannot fail, [then] most likely you won't, and working hard goes along with this. I think it is so true that ‘the harder you work the luckier you are!' We all get frustrated with difficulties, but I really believe that if you want to find the rainbow, [then] you have to put up with a little rain now and then." Garrighan adds that she constantly reminds herself that "it could always be worse." (Imprints of Success, by Amy Yard, September 2001 e-magnify.com)Her answer inspired me to write about the value and importance of remaining positive while running your small business. As entrepreneurs, it’s easy to get discouraged. The tricky thing about being positive is that it’s an
In my role as a private lender, many of my borrowers have spent the major part of this year listening to many variations of the same story from conventional lenders. The basic story is the conventional mortgage lenders have become victims of their own marketing and exuberance. The easily attainable low-down payment and nothing down mortgages in conjunction with the lowest mortgage rates in many years has finally reached its tipping point.
Let’s also include the negative impact of mortgage fraud. Inflated appraisals, straw buyers, and unscrupulous real estate professionals collaborated in fraudulent transactions that cost lenders all over America millions of dollars in loan losses.
Unfortunately the customary response by the banking and mortgage lending industry to the needed market correction is an “over-correction”. The term “over-correction” is appropriate because it causes what I am sure are unintended consequences.
Here is an example of unintended consequences. Before a private or hard money loan is granted, due diligence is conducted. A part of the due diligence is a credit report on the borrower and an appraisal on the property. Our properties have a maximum Loan To Value ratio of 70% of the
We all know the saying, “Failing to plan (prepare) is planning (preparing) to fail.” I truly believe in this statement and I hope you do as well. Building your service business, including marketing it must be planned and does take work.I don’t happen to believe that there really are magic bullets or black magic boxes. My advice – quit looking. This stuff does take work, but you can certainly do it.If you’re like most people I meet, then planning is something you know is important but doesn’t always happen. We are generally ‘doers’. We need to feel like we’re “doing” something to be productive – whether it’s going to networking events, sending out mailers, or making calls to try and set up meetings. And all that planning sure doesn’t feel like we’re “doing” anything. It’s time consuming when there is plenty of day-to-day work to be done. And truthfully, not everyone knows the best way to go about it
Let’s also include the negative impact of mortgage fraud. Inflated appraisals, straw buyers, and unscrupulous real estate professionals collaborated in fraudulent transactions that cost lenders all over America millions of dollars in loan losses.
Unfortunately the customary response by the banking and mortgage lending industry to the needed market correction is an “over-correction”. The term “over-correction” is appropriate because it causes what I am sure are unintended consequences.
Here is an example of unintended consequences. Before a private or hard money loan is granted, due diligence is conducted. A part of the due diligence is a credit report on the borrower and an appraisal on the property. Our properties have a maximum Loan To Value ratio of 70% of the
Every day you miss calls from customers who need your products or services. But now you can get rid of all these problems, your call will be answered by a live answering service with your company name. Representatives at answering services will provide you services like answering phone service, answering message service or even enter data into your web form.But finding an answering service company is not easy, after all you are going to trust one of your assets i.e. your customer or prospects or clients or patient – to a third party about whom you know a very little. Hence, it is very important to choose a perfect answering service suitable for your business. We recommend you to take a glance of this article before taking a decision regarding answering services.If you are serious about growing your business and providing superior customer service, you need a solution that provides 24/7 answering services with live oper
Unfortunately the customary response by the banking and mortgage lending industry to the needed market correction is an “over-correction”. The term “over-correction” is appropriate because it causes what I am sure are unintended consequences.
Here is an example of unintended consequences. Before a private or hard money loan is granted, due diligence is conducted. A part of the due diligence is a credit report on the borrower and an appraisal on the property. Our properties have a maximum Loan To Value ratio of 70% of the
For the millions of consumers with bad credit and no credit, getting approved for a major credit card takes a lot of effort. Unfortunately, establishing credit is as equally challenging as re-establishing credit. Creditors consider both types of people as risky applicants. Thus, they are less eager to extend a line of credit. However, there are ways to get around this problem. Bad credit credit cards are intended to make it easier for some to obtain credit.The Importance of Establishing a Good Credit HistoryEven with poor credit, you will be able to finance many purchases such as a home or vehicle. However, good credit has certain advantages. Those with a high credit score receive prime rates on home loans and auto loans.For some, low rates may not be a huge deal. Yet, low interest rates on loans can potentially save you hundreds each month. Moreover, having good credit unlocks the d
Here is an example of unintended consequences. Before a private or hard money loan is granted, due diligence is conducted. A part of the due diligence is a credit report on the borrower and an appraisal on the property. Our properties have a maximum Loan To Value ratio of 70% of the After Repaired Value (ARV). We have an equity cushion of at least 30% on each property. If a borrower defaults this represents a relatively safe position for us because we can sell the property at a discount and still recover our investment.
When a borrower is ready to refinance the rehabilitated property he or she must get another appraisal done. The second appraisal confirms the values resulting from the improvements scheduled in the first appraisal. These appraisals cost between $300 and $400 each in most cases!
Here is where it gets really interesting. During the refinancing underwriting process lenders frequently conduct an “appraisal review”. This is done to confirm the value of the property. After all there has been mortgage fraud that has inflated some of the property values in the area. If fraudulently inflated properties were used as comparable sales in the appraisal, it is disqualified and replaced with a more current candidate property.
If the area in question is a “farm area” for property rehabilitation, there is a very strong probability the sale price for the replacement property will be significantly less than the actual value of the rehabilitated property being refinanced. When that happens, the value does not appear to be there for refinancing even though the property has been dramatically improved over the rest of the neighborhood! That is an unintended consequence.
When the borrower cannot refinance the propert
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